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Universal Display (OLED)
NASDAQ:OLED
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Universal Display (OLED) AI Stock Analysis

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OLED

Universal Display

(NASDAQ:OLED)

Rating:77Outperform
Price Target:
$160.00
▲(15.45% Upside)
Universal Display's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust profitability, low leverage, and raised revenue guidance highlight its solid position in the OLED market. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.
Positive Factors
Earnings
Universal Display reported better-than-expected June quarter results and raised the lower end of its guidance by $10M.
Growth Opportunities
OLED materials content will be 2-3x in foldable phones, presenting a growth opportunity when the market gains more traction.
Negative Factors
Commercialization Challenges
The timing of the commercial adoption of Blue is still dependent on the OLED market.
Tariffs
US tariffs and slow progress in blue color material commercialization are seen as new discount factors for Universal Display Corp.

Universal Display (OLED) vs. SPDR S&P 500 ETF (SPY)

Universal Display Business Overview & Revenue Model

Company DescriptionUniversal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. It owns, exclusively licenses, or has sole rights to sublicense approximately 5,500 issued and pending patents worldwide. The company supplies its proprietary UniversalPHOLED materials to display and lighting manufacturers, and others. It is also involved in the research, development, and commercialization of other OLED device and manufacturing technologies, including FOLED that are flexible OLEDs for the fabrication of OLEDs on flexible substrates; OVJP, an organic vapor jet printing technology; thin-film encapsulation technology for the packaging of flexible OLEDs and other thin-film devices, as well as for use as a barrier film for plastic substrates; and UniversalP2OLED, which are printable phosphorescent OLEDs. In addition, the company provides technology development and support services, including third-party collaboration and support to third parties for the commercialization of their OLED products. Further, it provides contract research services in the areas of chemical materials synthesis research, development, and commercialization for non-OLED applications. Universal Display Corporation was founded in 1985 and is headquartered in Ewing, New Jersey.
How the Company Makes MoneyUniversal Display generates revenue primarily through the sale of its proprietary OLED materials and technologies to manufacturers of display panels and lighting products. The company's revenue model is based on licensing agreements, where it licenses its patented technologies and materials to various industry partners, including major electronics firms. Additionally, UDC earns income from the sale of its phosphorescent OLED materials, which are critical for producing high-quality displays. The company's partnerships with leading display manufacturers, such as Samsung and LG, significantly contribute to its earnings, as these companies rely on UDC's advanced materials to create competitive OLED products in the marketplace.

Universal Display Key Performance Indicators (KPIs)

Any
Any
Revenue by Geography
Revenue by Geography
Chart Insights
Data provided by:Main Street Data

Universal Display Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted record financial performance and significant market growth potential, especially in the OLED sector. Although there are concerns regarding macroeconomic uncertainties and a decline in material sales, the overall sentiment is positive due to raised revenue guidance, innovations in technology, and a solid financial position.
Q2-2025 Updates
Positive Updates
Record Performance in Q2 2025
Universal Display Corporation reported record revenue of $172 million and net income of $67 million or $1.41 per diluted share for the second quarter of 2025.
Raised Revenue Guidance for 2025
The company raised the low end of its 2025 revenue guidance to $650 million to $700 million, reflecting confidence in continued growth despite macroeconomic uncertainties.
OLED Market Growth
The OLED market is entering a dynamic phase of expansion, with OLED IT units forecasted to more than double by 2027 and automotive OLED display shipments projected to grow by over 300% from 2024 to 2029.
Innovations and R&D Achievements
Significant advancements in OLED technology, including the verification of commercialization level performance of blue phosphorescent OLED panels, and a strong R&D focus using AI/ML to accelerate material discovery.
Strong Financial Position
The company ended the quarter with approximately $932 million in cash, cash equivalents, and investments, and announced a $0.45 quarterly dividend.
Negative Updates
Decline in Material Sales
Total material sales were $89 million in Q2 2025, down from $95 million in the same quarter of 2024. Green emitter sales decreased from $72 million to $64 million year-over-year.
Macroeconomic Uncertainty
Ongoing macroeconomic uncertainty is acknowledged as a factor that may impact future performance, though the company remains optimistic about its growth trajectory.
Company Guidance
During Universal Display Corporation's second quarter 2025 earnings call, the company reported record revenue of $172 million and a net income of $67 million, or $1.41 per diluted share. The company raised the lower end of its 2025 revenue guidance to $650 million to $700 million, reflecting confidence in the OLED market's robust growth, particularly in consumer electronics and automotive sectors. According to Omdia, OLED IT units are projected to increase from 23 million in 2024 to 48.6 million units in 2027, while automotive OLED display shipments are expected to grow by over 300% by 2029. The first Gen 8.6 OLED fabs from Samsung Display and BOE are anticipated to come online next year, enhancing medium-sized OLED manufacturing capacity. Universal Display continues to innovate with its AI/ML platform and proprietary OLED materials, including a promising phosphorescent blue, which could boost OLED display energy efficiency by up to 25%. The company ended the quarter with $932 million in cash and investments, and its Board approved a quarterly dividend of $0.45.

Universal Display Financial Statement Overview

Summary
Universal Display demonstrates strong financial health with high profitability, low leverage, and effective cash management. While revenue growth is stable, the decline in free cash flow growth and slight margin pressures warrant monitoring. Overall, the company is well-positioned in the semiconductor industry with a solid financial foundation.
Income Statement
85
Very Positive
Universal Display shows strong profitability with a high gross profit margin of 76.55% and a net profit margin of 36.94% in TTM. Revenue growth is modest at 2.05% TTM, indicating stable growth. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.
Balance Sheet
88
Very Positive
The company maintains a very low debt-to-equity ratio of 0.01, indicating minimal leverage and strong financial stability. Return on Equity (ROE) is healthy at 14.87%, showcasing effective use of equity. The equity ratio is strong, suggesting a solid financial foundation with significant equity backing its assets.
Cash Flow
78
Positive
Operating cash flow to net income ratio is strong at 1.57, indicating good cash generation relative to earnings. However, free cash flow growth has declined by 12.48% TTM, which could be a concern if it continues. The free cash flow to net income ratio remains solid at 0.73, suggesting effective cash management despite recent declines.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue661.99M647.68M576.43M616.62M553.52M428.87M
Gross Profit506.79M499.22M441.05M488.72M438.53M343.39M
EBITDA304.98M282.94M260.59M309.38M269.61M194.71M
Net Income244.52M222.08M203.01M210.06M184.21M133.37M
Balance Sheet
Total Assets1.93B1.83B1.67B1.53B1.47B1.27B
Cash, Cash Equivalents and Short-Term Investments525.21M492.67M514.12M577.77M663.19M730.01M
Total Debt17.79M19.14M22.86M29.04M27.26M6.88M
Total Liabilities217.09M215.81M221.74M257.45M367.00M356.51M
Stockholders Equity1.71B1.62B1.45B1.28B1.10B912.71M
Cash Flow
Free Cash Flow143.23M211.10M28.42M79.61M147.55M120.74M
Operating Cash Flow197.07M253.74M154.78M126.81M191.10M148.79M
Investing Cash Flow-105.43M-164.41M-83.29M-280.74M-457.75M391.26M
Financing Cash Flow-88.69M-82.33M-72.93M-64.64M-51.37M-41.66M

Universal Display Technical Analysis

Technical Analysis Sentiment
Negative
Last Price138.59
Price Trends
50DMA
148.24
Negative
100DMA
143.70
Negative
200DMA
147.31
Negative
Market Momentum
MACD
-1.73
Negative
RSI
39.42
Neutral
STOCH
27.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLED, the sentiment is Negative. The current price of 138.59 is below the 20-day moving average (MA) of 141.03, below the 50-day MA of 148.24, and below the 200-day MA of 147.31, indicating a bearish trend. The MACD of -1.73 indicates Negative momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 27.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OLED.

Universal Display Risk Analysis

Universal Display disclosed 30 risk factors in its most recent earnings report. Universal Display reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Universal Display Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$7.94B34.9120.30%35.17%0.10%
77
Outperform
$6.59B27.0515.07%1.23%6.23%10.12%
75
Outperform
$9.09B289.874.57%-22.15%-83.34%
65
Neutral
$5.04B246.0411.57%22.22%
61
Neutral
$35.45B7.89-10.11%1.88%8.47%-9.45%
55
Neutral
$2.53B76.584.68%1.86%7.16%-21.24%
53
Neutral
$5.71B-6.75%-18.82%-195.20%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OLED
Universal Display
138.59
-41.95
-23.24%
LSCC
Lattice Semiconductor
66.38
23.33
54.19%
POWI
Power Integrations
45.10
-16.12
-26.33%
RMBS
Rambus
73.77
33.19
81.79%
SMTC
Semtech
58.09
16.51
39.71%
ALGM
Allegro MicroSystems
30.85
7.66
33.03%

Universal Display Corporate Events

Executive/Board ChangesShareholder Meetings
Universal Display Holds 2025 Annual Meeting on June 18
Neutral
Jun 23, 2025

Universal Display held its 2025 Annual Meeting on June 18, 2025, where 42,727,869 votes were represented. During the meeting, the election of directors, approval of executive compensation, and ratification of KPMG LLP as the independent accounting firm for 2025 were voted upon. The election of directors saw varying levels of support for each candidate, while the advisory resolution on executive compensation received significant approval. The ratification of KPMG LLP was also largely supported.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2025